Increasing Annual Gold Production Guidance
THUNDER BAY, ON, July 12, 2018 /CNW/ - PREMIER GOLD MINES
LIMITED ("Premier" or "The Company") (TSX:PG) is pleased to
announce its second quarter (Q2) production results, including an
increase in annual production guidance, and a continued solid and
safe track record from the Company's mining operations.
Second Quarter - 2018 Production Highlights:
- Gold production of 16,007 ounces
- Silver production of 51,746 ounces
- Gold Sales of 20,642 ounces
First half gold production from South Arturo significantly
exceeded annual production forecasts. The Company has therefore
revised its full-year consolidated production guidance from
85,000 - 95,000 to 90,000 - 100,000 ounces of gold (See Table
2).
Table 1 provides a summary of production statistics from the
mines and of ounces sold on a Q2 and year-to-date (YTD) basis.
Table 1 – Preliminary Production Results for Q2 2018 and
YTD
|
|
|
MINE
|
GOLD PRODUCED
(ounces)
|
SILVER PRODUCED
(ounces)
|
|
Q2
2018
|
YTD
2018
|
Q2
2018
|
YTD
2018
|
Mercedes,
Mexico
|
13,780
|
28,789
|
44,366
|
101,736
|
South Arturo,
Nevada
|
2,227
|
17,767
|
7,380
|
9,836
|
Consolidated
Production
|
16,007
|
46,556
|
51,746
|
111,572
|
Gold Ounces
Sold
|
20,642
|
49,916
|
58,098
|
124,308
|
"The Company began to see the impact of Mercedes development
initiatives late during the second quarter when production from
Diluvio and Rey de Oro began to
reach the mill." stated John
Begeman, Executive Chairman of Premier. "It is
expected that these two deposits will drive increased production
and a stronger second half at Mercedes. When also considering
stronger than expected production from South Arturo, we have
re-evaluated and ultimately revised 2018 gold production
guidance".
South Arturo Mine, Nevada
The South Arturo Mine, a joint venture operated by Barrick Gold, has delivered exceptional results
since achieving commercial production. Processing of ore
stockpiled from mining of Phase 2 will continue on a limited scale
throughout the balance of the year, however processed ore in
H1-2018 was well above guidance resulting in an increase in annual
production expectations.
Efforts are now focused on expanding operations with
construction of two new mines, the Phase 1 open-pit and the El Nino
underground project. Stripping of Phase 1 is now underway and
construction of a ramp at El Nino will begin in July. Work
also continues to advance a potential "Phase 3" open-pit
opportunity, with drilling and additional metallurgical and
geotechnical characterization being completed during 2018.
Mercedes Mine, Mexico
Mercedes Mine production was impacted during the first half of
the year owing to delays in the development of the Diluvio and
Rey de Oro deposits, resulting in
production being weighted towards the second half of the
year. Reinterpretation of the Diluvio ore shapes required
changes to the stope designs. Mining in Rey de Oro was delayed by permitting
requirements for the ventilation system.
Revised 2018 Production Guidance
Table 2 - Revised Production Guidance
2018 Production
Guidance
|
Mine
|
Production
|
South
Arturo
|
15,000 –
20,000
|
Mercedes
|
75,000 –
80,000
|
Consolidated
|
90,000 –
100,000
|
Q2 – 2018 financial results and conference call
details:
Full financial results for the three months ended June 30, 2018, will be released before market
open on August 8, 2018 and a
conference call with senior management will be held at 10:00 am EDT.
Details for the conference call and webcast can be found below
and will be accessible on the Company's website at
www.premiergoldmines.com
Toll Free (North
America): 1-888-390-0605
International: 1-416-764-8609
Conference ID: 56942802
Webcast Link
https://event.on24.com/wcc/r/1794406/82F06DEFD22FC9455430F56D15914A16
Conference Call Replay
The conference call replay will be available from 1:00pm EDT on August 8,
2018 until 11:59 pm EST on
August 15, 2018.
Toll Free Replay Call (North
America): 1-888-390-0541
International Replay Call: 1-416-764-8677
Passcode: 942802#
Premier Gold Mines Limited is a gold producer and
respected exploration and development company with a high-quality
pipeline of precious metal projects in proven, accessible and safe
mining jurisdictions in Canada,
the United States, and
Mexico.
Stephen McGibbon, P. Geo.,
Executive Vice President, Corporate and Project Development, is the
Qualified Person for the information contained in this press
release and is a Qualified Person within the meaning of National
Instrument 43-101.
This Press Release contains certain information that may
constitute "forward-looking information" under applicable Canadian
securities legislation. Forward-looking information includes, but
is not limited to, statements about strategic plans, including
future operations, future work programs, capital expenditures,
discovery and production of minerals, price of gold and currency
exchange rates, timing of geological reports and corporate and
technical objectives. Forward-looking information is necessarily
based upon a number of assumptions that, while considered
reasonable, are subject to known and unknown risks, uncertainties,
and other factors which may cause the actual results and future
events to differ materially from those expressed or implied by such
forward-looking information, including the risks inherent to the
mining industry, adverse economic and market developments and the
risks identified in Premier's annual information form under the
heading "Risk Factors". There can be no assurance that such
information will prove to be accurate, as actual results and future
events could differ materially from those anticipated in such
information. Accordingly, readers should not place undue
reliance on forward-looking information. All forward-looking
information contained in this press release is given as of the date
hereof and is based upon the opinions and estimates of management
and information available to management as at the date
hereof. Premier disclaims any intention or obligation to
update or revise any forward-looking information, whether as a
result of new information, future events or otherwise, except as
required by law.
SOURCE Premier Gold Mines Limited